Forrester Research, Inc. (Nasdaq: FORR) today announced its first-quarter ended March 31, 2005 financial results.

First-Quarter Financial Performance

  • Total revenues were $33.8 million, compared with $31.7 million for the first quarter of last year.
  • On a GAAP-reported basis, which reflects an effective tax rate of 39 percent, Forrester reported first-quarter net income of $2.7 million or $0.13 per diluted share, compared with a net loss of $257,000, or $0.01 per diluted share, for the same period last year.
  • On a pro forma basis, net income was $2.6 million or $0.12 per diluted share, for the first quarter of 2005, which excludes amortization of $1.1 million of acquisition-related intangible assets, $1.7 million of realized gains on sales of securities, and reflects a pro forma effective tax rate of 35 percent. This compares with pro forma net income of $2.5 million, or $0.11 per diluted share, for the same period in 2004, which excludes amortization of $2.3 million of acquisition-related intangible assets, reorganization costs of $2.0 million, and a pro forma effective tax rate of 35 percent.

“Forrester’s first-quarter financial results marked a good start to 2005,” said George F. Colony, chairman of the board and chief executive officer. “We reported year-over-year organic growth in both revenues and earnings per share. New business continued to improve and client renewals remained strong. Consulting, in particular, performed well during the quarter. As we move through the rest of the year, our top priorities will be to continue to regenerate the research business, as well as to grow our new Data and Forrester Oval Program™ product offerings.”

Forrester is providing financial guidance as follows:

Second-Quarter 2005 (GAAP):

  • Total revenues of approximately $37.0 million to $39.0 million.
  • Operating margin of approximately 8 percent to 10 percent.
  • Other income of approximately $700,000.
  • An effective tax rate of 39 percent.
  • Diluted earnings per share of approximately $0.10 to $0.12.

Second-Quarter 2005 (Pro Forma):

Pro forma financial guidance for the second quarter of 2005 excludes amortization of acquisition-related intangible assets of approximately $800,000 and any gains or impairment charges related to non-marketable investments.

  • Pro forma operating margin of approximately 10 percent to 12 percent.
  • Pro forma effective tax rate of 35 percent.
  • Pro forma diluted earnings per share of approximately $0.13 to $0.15.

Full-Year 2005 (GAAP):

  • Total revenues of approximately $148.0 million to $153.0 million.
  • Operating margin of approximately 10 percent to 12 percent.
  • Other income of approximately $2.6 million to $3.0 million.
  • An effective tax rate of 39 percent.
  • Diluted earnings per share of approximately $0.52 to $0.62.

Full-Year 2005 (Pro Forma):

Pro forma financial guidance for full-year 2005 excludes amortization of acquisition-related intangible assets of approximately $3.5 million, as well as all gains and impairment charges related to marketable and non-marketable securities.

  • Pro forma operating margin of approximately 12 percent to 14 percent.
  • Pro forma diluted earnings per share of approximately $0.62 to $0.67.
  • An effective tax rate of 35 percent.